The Protocol
Last updated
Last updated
The OpenDelta Index Protocol functions as both a technology layer and regulatory framework for the creation of scalable index tokens on-chain.
The protocol consists of hybrid on-chain/off-chain infrastructure that allows us to efficiently scale while also leveraging the unique properties of smart contracts and enabling users of the protocol to share in the ownership and upside of the project in a fully decentralized way.
OpenDelta’s off-chain infrastructure allows us to custody assets on multiple chains, easily mint and redeem index tokens, put the underlying assets to productive use, and tap into the deepest and most liquid crypto trading markets. All of this enables end users and market makers to get the simplest, fastest, and most cost-effective experience using our indexes.
Multi-Party Custody
OpenDelta utilizes multi-party custody to hold, secure, and stake all of the assets backing its indexes. For eligible assets, OpenDelta utilizes institutional-grade custody providers like Ceffu and Copper; we hold these assets in a multi-party wallet secured by OpenDelta, an exchange (where applicable), and an institutional-grade custodian.
For assets not available on these services, we utilize an internal multi-party computation (MPC) setup built on MPC vault. This allows us to hold and trade these assets on both CEXs and DEXs while eliminating single points of failure.
Public Proof-of-Funds
OpenDelta conducts periodic public proof-of-reserves. We publish all of the addresses where we hold funds backing each index, and we perform periodic attestations to prove control of those funds. We also work with a third-party security firm to publish periodic public proofs-of-reserves.
OpenDelta also leverages on-chain infrastructure to tokenize the indexes themselves. This allows the indexes to be liquid, tradeable, transferable, and composable across the Solana DeFi ecosystem. It also enables their easy integration into any front-end or user-facing application that supports SPL tokens.
ITs are index shares — they represent a specific basket of assets and track a benchmark. Each index issued by OpenDelta has its own corresponding set of ITs that users who want exposure to the index can purchase and hold. In addition, users who hold ITs can stake their ITs to get additional rewards. Each index is comprised of a basket of assets, some of which can be used to earn revenue via staking, lending, or protocol fees. The revenue earned on these assets is distributed between staked IT holders (on a per index basis).
